Australian shares closed lower today on low trading volumes. The financial and material sectors dragged on the market on softer commodity prices.
The S&P/ASX 200 Index closed 16 points lower at 4,677 while on the futures market, the SPI200’s up 11.
The economic news of the day was the Australian Bureau of Statistics saying that sales of new vehicles surprisingly rose 0.3 per cent in August.
To company news around this afternoon: Murchison Metals (ASX:MMX) has reported a profit of $732,000 for the 2009 financial year which was a big decline from the $55.6 million profit a year earlier. The result was impacted by lower iron ore prices as well as the deferral and cancellation of shipments. The results included the $25.9 million profit made on the sale of the company’s investment in Midwest Corporation. Murchison shipped 1.47 million tonnes during the financial year, compared to 1.34 million tonnes the year before. Murchison Metals shares finished the day 2.01% lower at $1.71.
PaperlinX (ASX:PPX) released its annual report today which showed that its directors enjoyed a base pay rise of up to 17 per cent the 2009 financial year despite the company reporting a loss, cutting staff, selling assets and not paying a dividend. The 2009 net loss was $798.2 million, compared to a net profit of $72.2 million the previous year. Director’s pays are likely to be a controversial point for shareholders this year. Paperlinx shares gained 4.72% to $0.665 today.
Also making news: Shares in Harvey Norman (ASX:HVN) declined after Credit Suisse downgraded the stock to ‘under perform’, saying it was time to take profits after recent price rallies.
Asciano Group (ASX:AIO) said in its annual report that it still expects the 2010 financial year to be tough but says it is well placed to grow earnings. The ports and rail operator said its three objectives in the next 12 months are completing the restructuring of the group's balance sheet; continuing the rollout of its new coal haulage operations by Pacific National; and cutting costs.
Taking a look at some of the stories covered in our earlier reports: As Qantas (ASX:QAN) released its annual report today, it emerged that former chief executive Geoff Dixon was paid $10.7 million in the 2009 financial year despite only serving 5 months in the role before being replaced by Alan Joyce. Qantas also said that the global economic outlook remains uncertain.
Macquarie Airports (ASX:MAP) has received and declined an offer from a group led by four businessman to take over management of the airports operator without paying Macquarie Group an exit fee of $345 million. Macquarie Airports said the proposal was too risky for shareholders.
In the best and worst performers: The best performing sector at close was the Telecommunications index, up 14 points to 1,145 while the worst performing was the Materials index; which lost 148 points to 11,446.
The best performing stock in the S&P/ ASX200 was Valad Property and shares jumped 7.14 per cent to $0.15. Shares in Gunns improved as it bid for Timbercorp’s assets and Macquarie Infrastructure shares also gained.
The worst performing stock was Independence Group and shares fell 5 per cent to $4.75. Shares in Carnarvon Petroleum and Austar also lost ground.
In commodities, gold is trading at $1,001.80 U.S an ounce and since this morning light crude is down 51 cents at $71.53 U.S a barrel.
